Today, the COVID-19 pandemic has propelled Net Zero and climate action to the top of the corporate agenda, as companies and countries recognize their vulnerability to global events and make efforts to build resilience across value chains.
"Turning a threat into an opportunity: The post-COVID-19 recovery can be a catalyst for innovative thinking and enhanced climate action." ~ Renat Heuberger CEO of South Pole
Covid-19 is making organisations 'net zero-ready'
Despite the concerning lack of milestones to reach net zero targets, our research also indicates that the post-Covid-19 recovery can be a catalyst for the innovative business thinking and approaches needed for climate action.
Excitingly, organisations' climate commitments are not only showing some immunity to the Covid-19 crisis, but many are actually using this pandemic to recognise and analyse their vulnerabilities, and accelerate climate action. Most organisations' climate mitigation efforts (65 per cent) have either remained the same through Covid-19 (38 per cent), or their climate mitigation efforts have actually accelerated (27 per cent).
The Covid-19 crisis has seemingly given rise to a new 'net zero-ready' mindset. The majority of respondents to our survey reported an increased focus on innovation and collaboration, plus supply chain resilience, following the pandemic. This is an exciting indication that the incremental change we have seen over decades is possibly being replaced by bigger, bolder action, which certainly supports the journey to net zero.
Crucially, C-level executives (including CEOs and CFOs) are trusted by most CSR and environment professionals to have the knowledge and expertise to lead the race to Net Zero. That is key, given the risks and opportunities associated with climate change are so integral to the success of an organisation. It is also key that awareness of the issues now seems to have spread beyond only the CSR staff.
Leaders must seize back control of Net Zero to avoid risk
To pivot from the current response to Covid-19 to a full focus on decarbonisation, it is time net zero journeys are fully locked-into the satellite navigation of all organisations to show stakeholders their exact time of arrival. In other words, NZTs need to be set and milestones to get there must be communicated to stakeholders - not only to build trust and manage risk, but also because it makes financial sense. Boards that set NZTs did not do so simply out of goodwill; climate action is a proxy for efficiency and profitability - the triple bottom line benefit is clear.
Now is not the time to stall. The organisations that fully embrace net zero should set in motion the mechanisms for value chain transformation to minimise losses from the oncoming economic and climate disruption. But first, they must cement their aspirations with accountable and transparent milestones. It's high time organisations earn their claim on net zero.
Comments